Tuesday, January 12, 2010

EURCHF—new low

I still have a small position left in this pair (from 1.4928) and my stop is now 100 pips above breakeven. I’ve taken much of this trade off the table at various profit points. It has been dropping since mid-December to a low yesterday of 1.4731. It hasn’t seen prices this low since last March. Now that the Swiss National Bank seems to have little interest in intervention, it’s possible it could drop to its prior lows of 1.4580 or so. There’s significant support in the 1.4695 area so a bounce wouldn’t be out of the question. Here’s the daily chart:

© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.

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